Reconciling your accounts can help to identify and correct errors, ensuring all transactions end up correctly. The monthly bank reconciliation process should be free of errors and streamlined for maximum efficiency. It involves reviewing each individual transaction to see if the amount captured matches the actual amount spent. Documentation review tends to be more accurate [...]

The difference between the current ratio and the acid test ratio (or quick ratio) mainly involves the current assets inventory and prepaid expenses. The numerator of the acid-test ratio can be defined in various ways, but the primary consideration should be gaining a realistic view of the company's liquid assets. Cash and cash equivalents should [...]

These lists are not comprehensive, as new companies crop up weekly, and companies frequently merge. By partnering with us, you can tap into the vast pool of talented professionals in Latin America, drive growth, and increase the financial health of your company. Once a BPO company is hired, more granular agreements may be drawn up [...]

The second is the matching principle, which requires that expenses be matched to related revenues in the same accounting period they are generated. Bad debt expense must be estimated using the allowance method in the same period and appears on the income statement under the sales and general administrative expense section. Since a company can't [...]

For a discussion of business/investment use, see Partial business or investment use under Property Used in Your Business or Income-Producing Activity in chapter 1. Reduce that amount by any credits and deductions allocable to the property. The following are examples of some credits and deductions that reduce basis. On April 15, 2022, you bought and [...]